Seek Business Capital, often known as Seek Capital, is a lending recommendation service that can assist you in obtaining money that suits your needs and qualifications. The solution allows you to access working capital to help your business grow and thrive. Before using the service, you should be aware of its fees and reviews. Some consumers admire the service, but many others believe it is excessively pricey or does not satisfy their needs. This review will cover what you must know about Seek Business Capital, including the benefits and drawbacks, some reviews even on BBB, how to apply, know if it’s legit, and seek Capital line of credit.
What is Seek Business Capital?
Seek Business Capital is not a traditional lender. It is, instead, a recommendation service that offers to connect you with lenders based on your qualifications and the types of small business finance you require. It’s difficult to get a hold of the financial aspects you would be most interested in, such as the exact rates and fees you might be paid if you utilize Seek Business Capital because it’s not very clear about who or how many lenders it partners with. While Seek Business Capital can link clients to several sorts of business financing products, the company’s main product is an unsecured credit card.
How Does Seek Capital Work?
Seek is not a lending company. Instead, it forwards your application to its lender network. The company does not reveal the names of its lender partners or how many lenders it works with.
Seek Capital will work with you to select the optimal program when you apply. Because it works with a variety of lenders, you may be eligible for a variety of business lending options.
Regardless of the investment option, Seek Capital provides funding ranging from $5,000 to $500,000. Typically, fixed APRs range from 9% to 40%.
#1. Business Credit Cards
Seek Capital provides business capital in part by connecting business owners with personal and business credit cards. The company manages the application and funding of the cards. Obtaining a credit card with a 0% APR for the first 12 months may be attainable.
#2. Small Business Loans
Access to various small business loans and finance arrangements is also provided by the company’s lending partners. The Seek Capital website gives some general information on small company loans but no specifics.
When you apply, you cannot specify which loan you want. You must instead wait for the company’s lender partner to return a loan option. If you do not receive a credit card, the lending institution to which Seek Capital transmits your information will either:
- Term loans.
- Business Line of Credit.
- SBA Loans.
- Merchant Cash Advance.
- Equipment Financing.
- Invoice Factoring.
- Startup loans.
- Personal loan for business.
- Personal loans for business expenses.
How to Apply to Seek Capital
Seek Capital offers a simple online application. To apply for financing, follow the procedures below.
Step #1: Complete the Online Application
The initial step is to complete the online application. You will specify how much money you require and how you want to spend it. You will then provide the business name and contact information, as well as your name and contact information. Following that, you will indicate your length of time in business, monthly revenue, and credit score range.
Step #2: Funding Consultation
The referral service will contact you for an over-the-phone session with a financial expert. You submit further information about your company, assets, and requirements.
Step #3: Get Your Funding Estimate
The underwriting staff at Seek Capital will examine your company and credentials. If you are authorized, you will be given an estimate of the funding amounts, rates, and conditions. At this time, the organization will most likely execute a light credit pull.
Step #4: Finalize Your Application & Documentation
If you accept the funding estimate, Seek Capital will send your application to one of their third-party lenders, who will do a hard credit check. You may be required to provide extra documentation depending on the loan type. Documents you may be required to supply include the following:
- Driver’s license or government-issued ID.
- Personal bank statements.
- Business bank statements.
- Personal tax returns.
- Business tax returns.
- Personal credit report.
- Business credit reports.
- Profit and loss statements.
- Business debt schedule.
- Balance sheet.
- Personal Financial Statement (only for SBA loans).
Step #5: Receive Funding
The lender closes the loan when you complete the application and provide any required papers. You’ll typically receive your funds in 1-3 weeks, although certain products allow for same-day funding.
Seek Capital, Post-Funding
Once you’ve been authorized for money, the business loan referral agency will charge you an origination fee. If you receive a company credit card, for example, the first charge will be Seek Capital’s fee.
Seek Capital charges a $495 termination fee if you were approved for finance but declined it. If you were denied, you are not required to pay the charge.
Your payment terms are heavily influenced by the loan or financing arrangement you obtained. Monthly payments will be required for SBA loans, term loans, and equipment financing. Business credit lines are typically reimbursed weekly. Merchant cash advances are paid on a daily or monthly basis.
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Seek Capital submits information to all three credit bureaus. Late and missed payments can have a negative impact on your credit score. The company does not provide an online payment tracking platform. To maintain track of payments, you must contact them.
According to some evaluations, there are prepayment penalties if you pay off your loan early. However, we were unable to confirm this on the Seek Capital website. There appear to be no early payment discounts.
Seek Capital allows you to renew, but it does not provide renewal details. For renewal information, please contact your Seek Capital agent.
What are the Advantages of Seek Capital?
The main benefit of Seek Capital is that you can fill out one application and have it submitted to various lenders. Business owners that don’t have time to investigate their funding possibilities can profit from the application procedure.
A decision on your request is normally made within a few business days. Because the advertising recommendation service works with so many lenders and goods, applicants are approved at a high rate – more than 92%.
It’s also appropriate for startups, which frequently struggle to acquire company financing. The service also has a high client satisfaction rating.
What are the Disadvantages of Seek Capital?
Seek Capital does not operate as a loan, marketplace, or brokerage. It is a service that refers to advertisements. Users who sign up for the service frequently complain about constant spam and aggressive sales calls.
The company charges exorbitant fees, such as a $495 application fee, a roughly 10% origination fee, and a $495 termination fee if you reject the funding offer. There may be additional lender costs.
The website of the service does not provide much information on available items, terms, or approval requirements. You have no idea what you’re applying for until you get an offer.
Customers have also complained about the fees, relentless salespeople, and poor impact on their credit with Seek Capital. The lender’s typical funding time is 1-3 weeks. Many alternative lenders and loan brokers may fund loans in as little as 1-3 business days.
Seek Business Capital Pros & Cons
Pros:
- There are numerous loan options accessible.
- The online application process is simple.
- Credit decisions are usually made between 1-3 business days.
- A high rate of approval.
Cons:
- Whether you are approved or not, there is a $495 application cost.
- Origination and termination fees are exorbitant.
- Qualifications, terms, and rates are not made clear.
- It is possible that it will receive spam from its loan partners.
- There are numerous bad web reviews.
- Most products have a lengthy fundraising cycle.
Is Seek Business Capital Legit?
There are diverse answers to if Seek Business Capital is legit or not. Seek Capital is not a lender or broker but rather a marketing service. It is accredited by the Better Business Bureau with a B rating, so it is not a scam site. However, many users feel the service uses predatory lending tactics and high-pressure sales. In particular, paying a hefty application fee upfront is a red flag for many business owners. You can have the experience to tell if Seek Business Capital is legit or not.
What Does Seek Business Capital Review Typically Focus on?
The Seek Business Capital review is mixed, but it tends to be bad. Seek Business Capital referral service has an overall rating review of 1.06 out of 5 on the BBB and 2.4 out of 5 on Trustpilot.
The Seek Business Capital good review mentions exceptional client service. Many consumers specifically specify their finance agent’s name. Another prominent element in a positive Seek Business Capital review is the ease of application and prompt decisions.
The majority of the negative feedback on the Seek Business Capital website is about the costs, funding time, and being sent to other providers. Several clients complained about being bombarded with messages even after declining funding. Another typical issue was that their credit score had suffered. Several customers expressed dissatisfaction with being referred for numerous credit cards while having excellent credit.
What are the Qualifications for Seek Capital?
The criteria vary according to the loan product. The recommendation services do not disclose minimum credentials, although they do offer certain eligibility ideas, such as a personal credit score minimum.
Term Loans:
- Credit score: 680+.
- Time in business: 3 years.
- Revenue: $300k annually.
Seek Business Capital line of credit:
- Credit score: 630+.
- Time in business: 1 year.
- Revenue: $180k annually.
Equipment financing:
- Credit score: 630+.
- Time in business: 2 years.
- Revenue: $130k annually.
SBA Loans:
- Credit score: 680+.
- Time in business: 4 years.
- Revenue: $180k annually.
Seek Capital does not provide suggested price ranges for any other products. According to some assessments, you need a credit score of 700 to qualify for its most lucrative services.
For Seek Capital, You Need to Know That:
Whether you obtain financing or not, there is a $495 application fee. Their funding choices also come with an origination cost. According to some reports, the origination cost might range between 9.5% and 10% of the funding amount. The fee structure could be expensive.
The referral service is ideal for borrowers who require finance but are unconcerned about the type of financing they acquire. You have little say over whatever small business loan or credit card you acquire.
Seek Capital conducts a soft credit pull for pre-approval, but its lending partners may conduct a hard credit check. When you apply, you agree to a rigorous credit check. A hard credit inquiry can lower your credit score.
Who Owns Seek Capital?
Seek Capital’s CEO and Board Chairman is Seek Capital’s founder, Roy Ferman. Roy’s focus on assisting small businesses in growing stems from his understanding of the lack of chances that business owners frequently face without access to funding.
Who Are Seek Capital Competitors?
American Associates, PadsForStudents, Hippo, and CREtelligent are competitors and comparable companies to Seek Now.
How Do You Source Funding for a Business?
To obtain finance for a firm, you must:
- Determine how much funding you’ll need.
- Fund your business yourself with self-funding.
- Get venture capital from investors.
- Use crowdfunding to fund your business.
- Get a small business loan.
- Use Lender Match to find lenders who offer SBA-guaranteed loans.
- SBA investment programs.
What Are the 3 Sources of Capital?
A company’s three primary sources of capital are equity capital, debt capital, and retained earnings.
How Do Startups Get Capital?
Startups can raise funds in a variety of ways, including company loans, personal savings, friends and family, venture capital, and startup grants.
What Is the Cheapest Source of Capital?
The cheapest source of finance is retained earnings.
What Is Most Expensive Source of Capital Is Usually?
Because investors may demand a portion of the profits, equity capital is among the most expensive forms of capital. There are no tax advantages like those provided by debt financing.
What Is the Best Source of Capital?
Angel investors, venture capitalists, government grants, and small business loans are all popular ways to raise funds. Other means of funding, like credit cards or invoice finance, should be utilized only if you require cash immediately and understand the dangers involved.
Conclusion
Seek Capital is best suited for small firms that require any form of finance and aren’t picky about the loan or financing they obtain. It can also be useful if you are unsure of your funding alternatives and want to explore what is available. Established enterprises with good credit and a high revenue are more likely to find lower-cost funding. Furthermore, if you prefer more control over your funding, you will most likely require a different provider.
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